Jebel Ali free zone company registration

Jebel Ali free zone company registration

DOING BUSINESS IN JEBEL ALI

Jebel Ali (JAFZA) is the pioneering free zone in the United Arab Emirates (UAE), and more than 7,100 companies have operations there. JAFZA company formation is an ideal, tax-efficient way for entrepreneurs to conduct international business.

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  • Advantages and disadvantages

    Advantages of Jebel Ali free zone company registration

    1. Incorporating in the Jebel Ali Free Zone can be advantageous for our Clients because:
        JAFZA business registration
      • JAFZA is the world’s largest free zone, which is ideally located within a short distance from one of the busiest airports and seaports in the world. As a result, our Clients wishing to setup a company for product distribution to Europe and Northern Africa will benefit from a JAFZA company;
      • Our Clients incorporating in JAFZA will benefit from the first rate infrastructure within the zone. Furthermore, due to its location in Dubai, a JAFZA company will be able to use the city’s highly efficient roadways and railways to transfer the goods within the UAE;
      • Following advantages will be afforded to a JAFZA entity: i) 100% corporate tax exemption ii) 100% personal tax exemption iii) 100% import and re-export duty exemption iv) efficient customs authorities and v) free repatriation of capital from the zone;
      • A JAFZA company can be completely foreign owned as 51% shareholding by a UAE national is not required. Furthermore, anonymity of directors and shareholders is assured as the UAE public register does not disclose this information. Lastly, there is no restriction on the hiring of expatriate employees in the zone;
      • A JAFZA entity can be setup as i) a branch/representative office of a foreign company ii) a free zone company or iii) a free zone establishment. Our Clients may choose one of these entities based on the i) initial investment amount and ii) number of shareholders;
      • Alternatively, our Clients may choose to incorporate an offshore company in JAFZA. For setup of such entity, there is no minimum share capital requirement. Also, our Client will not be allowed to rent office space within the zone. However, an offshore entity may conduct transactions within the zone;
      • Our Clients will have the option of obtaining the following licenses in JAFZA: i) General Trading License ii) Trading License iii) Industrial License iv) National Industrial License and v) Service License. For information about these, kindly refer to the list of JAFZA licenses.

    Disadvantages of Jebel Ali free zone company registration

    1. Jebel Ali business has a high minimum capital requirement of Dhs1 million (US$270,000) for a Free Zone Enterprise (FZE), which must be paid up during incorporation. The minimum capital for a Free Zone Company (FZC) and limited liability company is Dhs500,000 (US$136,000);
    2. JAFZA is the most expensive UAE free zone in which to set up a business. For example, one-off registration fees for a free zone Jebel Ali business setup amount to DHS15,000 (US$4,080). Furthermore, the fee for a General Trading License amounts to DHS30,000, compared to DHS7,000 in Ajman;
    3. Jebel Ali business setup is time consuming and difficult. International entrepreneurs should budget for five weeks for Healy Consultants to obtain the company registration certificate and operating license. Our staff will assist our Client with JAFZA company registration without our Client needing to travel to the UAE;
    4. There can be a waiting list for companies requiring office or warehousing space in the JAFZA because of the limited availability of space.
  • Best uses for a Jebel Ali company

    1. Jebel Ali company is an prime way to legitimately book international profits without paying local corporation tax. A Jebel Ali business is legally exempted from import and export taxes. Furthermore, there is no personal income tax in the UAE.

Company registration

  • Time to incorporate: Five weeks
  • Cost to set up: US$22,363
  • Minimum capital: US$136,000
  • Physical office required: Yes

Required appointments

  • Shareholders: 1
  • Directors: 1
  • Company secretary: No
  • Resident director: No

Key facts

  • Corporate tax rate: 0%
  • Corporate tax base: Territorial
  • Shelf companies: No
  • Main company type: FZ Company

Contact us

For additional information on our company registration services in Jebel Ali, please email us at email@healyconsultants.com. Alternatively please contact our in-house country expert, Ms. Chrissi Zamora, directly:
client relationship officer - Chrissi
JAFZADP World JAFZA